Madden NFL 13 News Post

$27 Million Settlement Announced in EA Madden Price-Fixing Lawsuit

09:18 PM - July 20, 2012 by Steve_OS

A proposed settlement was filed this evening in the lawsuit filed by consumers against EA regarding its exclusive license agreements with the NFL, NCAA and AFL.

Owen Good, over at Kotaku has been following along and explains it very well, right here.

The full details on the proposed settlement below. You can also download a copy of the proposed settlement, right here.

$27 Million Settlement Announced in EA Madden Price-fixing Lawsuit

SAN FRANCISCO � Attorneys representing purchasers of Electronic Arts, Inc. (NASDAQ: ERTS) (�EA�) football video games have reached a proposed settlement over claims that the gaming giant violated antitrust and consumer protection laws and overcharged consumers for the games.

The case, originally filed June 5, 2008, in the United States District Court for the Northern District of California, alleges that EA violated antitrust and consumer protection laws by establishing exclusive license agreements with the National Football League (NFL), National Collegiate Athletic Association (NCAA), and the Arena Football League (AFL). The agreements gave EA the exclusive right to produce football video games with the teams, players and other assets of the NFL, AFL and NCAA, the lawsuit states.

The proposed settlement, filed with the court on July 19, 2012, would establish a $27 million fund for consumers who purchased Madden NFL, NCAA Football or AFL games published by EA. If the settlement is approved by the court, consumers who purchased a sixth generation title (GameCube, PlayStation 2, and Xbox) may receive up to $6.79 per game. Those who purchased a seventh generation title (Wii, Xbox 360 and PlayStation 3) may be entitled to as much as $1.95 per game under the terms of the proposed settlement.

It also stipulates that EA will not sign an exclusive license arrangement with the AFL for five years and will not renew its current agreement with the NCAA, which expires in 2014, for at least five years.

�After more than four years of hard-fought litigation, we have reached a settlement that we strongly believe is fair to consumers,� said attorney Steve Berman, managing partner of Hagens Berman, the law firm representing consumers. �We look forward to moving this process forward and asking the court to approve this settlement, which we think is in the best interests of the class.�

On April 6, 2011, the court certified a class of consumers in the case, including all persons who purchased Madden NFL, NCAA Football or AFL games published by EA between January 1, 2005, and the present.

The proposed settlement must be approved by the court before it is final.

Consumers can learn more about this case by visiting www.hbsslaw.com/maddennfl. You can also contact Hagens Berman, lead-counsel in the action, by emailing [email protected].

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Member Comments

# 141 TreFacTor @ 07/23/12 09:12 PM

Quote:

Originally Posted by roadman


	The NFL is not going to interrupt the way they perform standard operating procedures. The only way they do business is with exclusives. As Tre said, it's been done before and I've even heard some people call the NFL weekly.

One of the last petitions I got in on was around the time Goodell took over. We flooded his email and twitter... there were people putting up direct phone numbers and the whole shebang. There was never even a glimmer of a response to any of the petitions as far as I know.

# 142 scoonie05 @ 07/23/12 09:47 PM

All that stuff has been tried already and failed miserably.....

# 143 tfctillidie @ 07/24/12 01:38 PM

Quote:

Originally Posted by StrawHat Patriot


	Can all of us here just create a petition to ask the NFL to stop having the exclusive license. Like some people create sites, advertise it. Like, anyone with access to EA/NFL should ask this. Like stuff like that.

I don't know of many online positions, when dealing with multi million dollar business decisions, to being successful.

I think it would be a waste and the previous attempts are proof. A real petition is not buying the game, but good luck getting everyone on board with that.

# 144 kjcheezhead @ 07/26/12 08:55 AM

Quote:

Originally Posted by scoonie05


	Lol, if EA doesnt have to pay for an ncaa license, wouldn't they have more money to spend on KEEPING the NFL license?? Lol

Sure, buy why would you wish that? How about they put the money into development of the game instead?

# 145 scoonie05 @ 07/26/12 09:21 AM

Quote:

Originally Posted by kjcheezhead


	Sure, buy why would you wish that? How about they put the money into development of the game instead?

Good point, but what can I do if they choose not too (which they haven't since Madden 05) Complain year after year?? We see how far that gotten us. "No where" Listen I want a better football game and competition like the rest of us but what's the point in crying over spilled milk?? It's better to speak with your wallets.....

# 146 SageInfinite @ 07/26/12 10:18 AM

Quote:

Originally Posted by CRMosier_LM


	The amount of money to purchase usage liscenses is high. That does not includes the rights to fight songs and what nots. Then you have to factor in 2 years of paying people to develop and paying for different engines and tech without bringing in a cent from the project... All in the hopes that it sells HALF as many as EA SPORTS NCAA Football series. That's a game of Russian roulette that could cause the entire company to fold. Sent from my ADR6400L using Tapatalk 2

All good points, but none of us have 2k's books or what the actual cost of what it would take to make a college football game, so I can only hope for the best. If they are capable of pulling off a college football game, I don't see why they wouldn't try it, is what I should've said. IMO NCAA wouldn't be that hard to best in quality, but it's just getting enough people to try the alternate would be the problem.

# 147 moneal2001 @ 07/26/12 11:03 AM

Quote:

Originally Posted by SageInfinite


	All good points, but none of us have 2k's books or what the actual cost of what it would take to make a college football game, so I can only hope for the best. If they are capable of pulling off a college football game, I don't see why they wouldn't try it, is what I should've said. IMO NCAA wouldn't be that hard to best in quality, but it's just getting enough people to try the alternate would be the problem.

prolly not hard to top in quality but it would be hard to catch it in sales. heck so many on here think nfl2k5 is the best football game we have had, yet it couldn't top madden 05's sales when it was less than half the price.

# 148 SageInfinite @ 07/26/12 11:09 AM

Quote:

Originally Posted by moneal2001


	prolly not hard to top in quality but it would be hard to catch it in sales. heck so many on here think nfl2k5 is the best football game we have had, yet it couldn't top madden 05's sales when it was less than half the price.

I agree, that's how it is when you have that installed base, people don't want to try something new until they are almost forced to, especially when taking a chance on a $60 game. I truly believe had 2k not been pushed out of the NFL(football) market, the gap would've closed and they might've even surpassed Madden/NCAA one year. Same way 2k beat up on NBA Live after being outsold so many years.

# 149 scoonie05 @ 07/26/12 11:14 AM

Quote:

Originally Posted by moneal2001


	prolly not hard to top in quality but it would be hard to catch it in sales. heck so many on here think nfl2k5 is the best football game we have had, yet it couldn't top madden 05's sales when it was less than half the price.

I agree with this....Sales are important.....

# 150 moneal2001 @ 07/26/12 11:25 AM

Quote:

Originally Posted by SageInfinite


	I agree, that's how it is when you have that installed base, people don't want to try something new until they are almost forced to, especially when taking a chance on a $60 game. I truly believe had 2k not been pushed out of the NFL(football) market, the gap would've closed and they might've even surpassed Madden/NCAA one year. Same way 2k beat up on NBA Live after being outsold so many years.

but their model wouldn't work now imo. it might have worked had ea not done the exclusive deal. losing money on a lower price point for a year while waiting for the new consoles to raise your price back up when they it might have worked, but they dont have the time now since they dont really have a foundation built, like they did before 2k5. now they would have to start from scratch. yes they could use parts of APF and 2k5 but they dont even have a team in place to begin work on a game. i dont think they would have a game ready before the new consoles come out, and starting at half price then upping it to full price mid console gen would not go well with the majority.

# 151 SageInfinite @ 07/26/12 11:54 AM

Quote:

Originally Posted by moneal2001


	but their model wouldn't work now imo. it might have worked had ea not done the exclusive deal. losing money on a lower price point for a year while waiting for the new consoles to raise your price back up when they it might have worked, but they dont have the time now since they dont really have a foundation built, like they did before 2k5. now they would have to start from scratch. yes they could use parts of APF and 2k5 but they dont even have a team in place to begin work on a game. i dont think they would have a game ready before the new consoles come out, and starting at half price then upping it to full price mid console gen would not go well with the majority.

I don't even know where this response came from based on my post, lol.

# 152 moneal2001 @ 07/26/12 12:00 PM

Quote:

Originally Posted by SageInfinite


	I don't even know where this response came from based on my post, lol.

mostly about the gap being closed if the exclusive license didnt come about. i was just saying that the lower price point was working, and they could have jumped the price back up with the new consoles(i think this was their strategy). but it wouldn't work now since they wouldn't have a game ready until the new consoles came out. if they tried to use the lower price point to lure customers at the beginning of the console gen, and then raise it after a year or two, in the middle of the console gen, it wouldn't go over well.

# 153 SageInfinite @ 07/26/12 12:12 PM

Quote:

Originally Posted by moneal2001


	mostly about the gap being closed if the exclusive license didnt come about. i was just saying that the lower price point was working, and they could have jumped the price back up with the new consoles(i think this was their strategy). but it wouldn't work now since they wouldn't have a game ready until the new consoles came out. if they tried to use the lower price point to lure customers at the beginning of the console gen, and then raise it after a year or two, in the middle of the console gen, it wouldn't go over well.

I don't think they would even try to use the price point now. IMO all they have to do is show a stellar game and promote the ways it will be superior to Tiburon football. The same way they got in the door with NBA 2k. It will take time and money, but they could win. I don't think it would work this gen though, we're too deep in.

# 154 SageInfinite @ 07/26/12 07:59 PM

Quote:

Originally Posted by CRMosier_LM


	I don't care how many studios make a college football or NFL game really. My point was more to the general consensus in the gaming industry that 2k or take two is hurting financially. I think starting a new ip for a college game is high risk and low reward for an already teetering (supposedly) company. Sent from my ADR6400L using Tapatalk 2

Yeah I don't care how many either, as long as VC is one of them, lol.

# 155 ozzy57 @ 07/26/12 08:38 PM

Quote:

Originally Posted by CRMosier_LM


	I don't care how many studios make a college football or NFL game really. My point was more to the general consensus in the gaming industry that 2k or take two is hurting financially. I think starting a new ip for a college game is high risk and low reward for an already teetering (supposedly) company. Sent from my ADR6400L using Tapatalk 2

Supposedly Rockstar is the only reason that company is still surviving.

# 156 ozzy57 @ 07/26/12 09:34 PM

Quote:

Originally Posted by StrawHat Patriot


	Bio Shock's alright for 2K games.

Not saying it isn't just saying that supposedly Rockstar and what its worth is the supposed reason the company can survive not trying to knock bioshock or any other Take Two franchises

# 157 Cusefan @ 07/26/12 09:53 PM

Quote:

Originally Posted by CRMosier_LM


	I don't care how many studios make a college football or NFL game really. My point was more to the general consensus in the gaming industry that 2k or take two is hurting financially. I think starting a new ip for a college game is high risk and low reward for an already teetering (supposedly) company. Sent from my ADR6400L using Tapatalk 2

Not to mention that production costs have skyrocketed since 2K last made a football game. 2K was a great game because it had a talented staff, that staff is gone. Unless Rockstar plans on releasing a new GTA every 6 months, I doubt Take Two gets out of financial trouble for at least a few years

# 158 ozzy57 @ 07/26/12 10:35 PM

Quote:

Originally Posted by Cusefan


	Not to mention that production costs have skyrocketed since 2K last made a football game. 2K was a great game because it had a talented staff, that staff is gone. Unless Rockstar plans on releasing a new GTA every 6 months, I doubt Take Two gets out of financial trouble for at least a few years

I doubt they will as well they could even possibly "sell" Rockstar and close branches or sell off the entire company

# 159 gtyjrocks @ 07/30/12 08:23 PM

How does the law firm know if you have bough ea sports products?

# 160 roadman @ 07/30/12 08:27 PM

Quote:

Originally Posted by gtyjrocks


	How does the law firm know if you have bough ea sports products?

I think you initially had to sign up to the law firm to be put on a mailing list.

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